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The Finance Lease Agreement is a crucial document in UAE business operations, commonly used when entities require asset financing while optimizing their balance sheet structure. It enables businesses to acquire and use assets without immediate capital expenditure, while providing financial institutions with secured lending opportunities. The agreement must comply with UAE federal legislation, including the Commercial Code (Federal Law No. 18 of 1993) and Civil Code (Federal Law No. 5 of 1985), as well as Central Bank regulations. When structured as Islamic finance, it often takes the form of an Ijara agreement, requiring additional Sharia compliance considerations. The document typically includes detailed provisions on asset specifications, payment schedules, maintenance obligations, insurance requirements, and end-of-lease arrangements, making it suitable for various types of assets from equipment to vehicles and real estate.

1. Parties: Identification of the Lessor (finance company) and Lessee (customer), including full legal names, registration details, and addresses

2. Background: Context of the agreement, including the Lessee's request for financing and the Lessor's agreement to purchase and lease the asset

3. Definitions: Detailed definitions of terms used throughout the agreement, including financial terms, technical terms, and regulatory references

4. Asset Details: Comprehensive description of the leased asset, including specifications, condition, and location

5. Lease Term and Payments: Duration of the lease, payment schedule, calculation of lease payments, and payment methods

6. Delivery and Acceptance: Terms regarding the delivery of the asset, acceptance procedures, and documentation requirements

7. Use and Maintenance: Lessee's obligations regarding asset usage, maintenance requirements, and prohibited activities

8. Insurance: Insurance requirements, types of coverage, responsibility for premiums, and claims procedures

9. Title and Ownership: Confirmation of Lessor's ownership, restrictions on Lessee's rights, and transfer provisions

10. Representations and Warranties: Statements and guarantees made by both parties regarding their capacity, authority, and compliance

11. Events of Default: Circumstances constituting default and consequences thereof

12. Termination: Conditions for early termination, end-of-lease options, and associated procedures

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for dispute resolution